
Financial Performance - For the three months ended March 31, 2025, the company reported revenue of $739,000, a decrease of 34.4% compared to $1,128,000 in the same period of 2024[11]. - The company's net loss for the three months ended March 31, 2025, was $4,836,000, compared to a net loss of $405,000 for the same period in 2024, representing an increase in loss of 1,092.6%[11]. - Total revenue for the three months ended March 31, 2025, was approximately $739 thousand, a decrease of 34.4% compared to $1,128 thousand for the same period in 2024[114]. - The net loss for the three months ended March 31, 2025, was approximately $4.840 million, compared to a net loss of $0.405 million in the same period in 2024, representing an increase in loss of over 1,100%[202]. - Adjusted EBITDA for the three months ended March 31, 2025, was $(1,170) thousand, compared to $(387) thousand in 2024[131]. Assets and Liabilities - Total current assets increased to $2,888,000 as of March 31, 2025, from $1,787,000 as of December 31, 2024, reflecting a growth of 61.8%[9]. - The company's total assets reached $10,794,000 as of March 31, 2025, compared to $6,424,000 as of December 31, 2024, indicating a 68.5% increase[9]. - Stockholders' equity improved to $4,918,000 as of March 31, 2025, from a deficit of $1,600,000 as of December 31, 2024[9]. - The company had a working capital deficit of $2,506,000 as of March 31, 2025, raising concerns about its ability to continue as a going concern[26]. - As of March 31, 2025, total short-term loans amounted to $4,002,000, a decrease from $5,617,000 as of December 31, 2024[84]. Operating Expenses - The company incurred operating expenses of $5,315,000 for the three months ended March 31, 2025, significantly higher than $1,219,000 for the same period in 2024, marking a 336.5% increase[11]. - SG&A expenses increased by $3,960 thousand, or 328.4%, to $5,166 thousand, largely due to stock compensation expenses of $3,513 thousand related to employee stock options[124]. - The company anticipates overall operating expenses to continue increasing due to business expansion and being a newly public company, which may exceed current expectations[202]. Cash Flow - Cash and cash equivalents at the end of the period were $247,000, up from $48,000 at the beginning of the period, representing a 414.6% increase[15]. - The company reported a net cash used in operating activities of $6,785,000 for the three months ended March 31, 2025, compared to $581,000 for the same period in 2024[16]. - Net cash provided by financing activities increased to $7,257 thousand for the three months ended March 31, 2025, compared to $917 thousand in 2024, primarily due to proceeds from the issuance of shares[137]. Revenue Sources - Revenue from virtual and hybrid events accounted for approximately 96.5% of total revenue in Q1 2025, generating about $713 thousand, down from $1,081 thousand in Q1 2024[114]. - The Company operates as one segment with revenue types including Hybrid, Virtual, and Physical events, indicating a diversified revenue stream[39]. - The Company recognized revenue of $147 million and $275 million from deferred revenue during the three months ended March 31, 2025 and 2024, respectively[62]. Customer and Supplier Concentration - For the three months ended March 31, 2025, two customers accounted for approximately 54% and 18% of total revenue, respectively, compared to 66% and 16% for the same period in 2024[181]. - The company relies on a limited number of suppliers, with three suppliers accounting for approximately 22%, 11%, and 11% of total purchases for the three months ended March 31, 2025[183]. Future Plans and Risks - The company plans to consider obtaining additional financing through equity or debt financing to support its operations and growth[27]. - The company plans to incorporate AI technologies into its products, with initial enhancements expected in the second quarter of 2025[172]. - The company may pursue acquisitions, investments, and strategic partnerships to enhance competitiveness, but these actions could divert management's attention and increase operational risks[199]. - Economic downturns and geopolitical conditions may reduce customer demand, adversely affecting revenue and cash flows[203]. - The company faces risks related to compliance with evolving laws and regulations concerning privacy and data protection, which could result in significant fines and liability[206]. Legal and Compliance - The company has no material legal proceedings currently but anticipates potential future claims arising in the ordinary course of business[160]. - The company does not carry key person insurance for senior management, which could pose risks if key personnel leave[196]. Technology and Operations - The company utilizes AI for multi-language captioning and transcription features on its Xyvid Pro Platform[172]. - The company plans to improve platform features and incorporate emerging technologies to enhance service offerings, which may increase operational complexity[194]. - The company has not experienced significant interruptions in services due to errors or defects, but future interruptions may occur if errors are not detected and corrected[174].